Oil Markets React to Rumors of Eased US-Iran Sanctions and Weather Forecasts

Natural Gas futures pulled back on Wednesday as traders focused on milder weather forecasts and bet on lower demand.

The nearest support level for natural gas is located in the $3.00, $3.05 range, with a move below $3.00 potentially targeting the 50 MA at $2.91 and then the $2.75, $2.80 level.

Meanwhile, WTI oil retreated from session highs amid reports that the U.S. was ready to ease Iran sanctions for nuclear progress, according to a Wall Street Journal report.

Brent Oil also pulled back from session highs in volatile trading, with traders focused on rumors about U.S., Iran negotiations and the restart of the East-West pipeline.

The fundamental picture remains bullish for Brent oil, however, as the Strait of Hormuz remains closed while global oil reserves decline week after week.